Outright purchasing is the most expensive method of acquisition - requiring full payment of the total balance upfront. Other options are available and these are lease purchase or renting.
When is buying a commercial coffee machine outright the best choice:
- If your business has sufficient cash flow
- If you are certain of the machine you want (remember it is a big commitment)
- If your credit check is denied - if you don't pass your credit check your only option at acquiring machinery may be to purchase one outright.
What you need to watch out for:
- Company changes - When choosing a commercial coffee machine you need to be conscious of increases in staffing to ensure it can cater for this increased demand.
- Budget constraints - You need to familiarise yourself with what you are able to purchase with your money, with some models including a number of accessories.
- Hidden costs - There are numerous hidden costs that you must consider, such as years of service and maintenance fees.
- Training - When purchasing a machine outright you must ensure its ease of use, it is more than likely that people with no experience of using coffee machines will be operating it on a daily basis - so easy to use technology is something you must consider.
Buying a commercial coffee machine can sometimes be a difficult process, with things to consider including cups per day, space availability and range of beverages offered to name a few. Here at Bibium, we like to make the acquisition process as easy as possible which is why we’ve designed a quick quiz to help point you in the right direction, to check it out click here.
Moving on, in this article we will explore the intricacies that are involved in the purchasing process of a coffee machine, with this particular page being about outright purchasing. However, it is important to first have a brief understanding of the various payment options available, with suppliers offering machines through outright purchases, lease purchases or rentals.
Three ways to buy a coffee machine
Before exploring the three different ways of buying a commercial coffee machine in greater detail and looking at both the pros and cons of this method of machine acquisition - it is a good idea to explore the other ways that you can acquire a coffee machine.
Outright purchase - Purchasing a coffee machine outright is the most expensive method of acquisition, requiring full payment of the total balance of the coffee machine up front. This method of acquisition may be suitable for those businesses with generous reserves of disposable cash. Typically this type of purchase means you will hold greater responsibility for a coffee machine’s maintenance - however many manufacturers now offer a minimum of 12 months warranty, helping ease any worries of machine malfunctions.
Lease purchase - Lease purchases are also a great way to obtain high-quality machinery at an affordable price. Lease purchases are available in 1, 3 and 5-year agreements with each duration breaking down the payments into different weekly sums - however, they are usually paid on a monthly basis. The agreed weekly sum is paid to a finance company, who accept risk on behalf of the vendor. When your lease period ends, you have the ability to keep the machine, which usually comes with a ‘transfer of title fee’ - which is usually between £150 - £200.
Rental - Renting is always a good option that can be highly cost-effective. Agreements are made directly with the manufacturer, eliminating the need for a middle man. With the inclusion of service and maintenance fees - any problems can be handled with ease, being solved quickly and easily.
It’s important to understand when buying a commercial coffee machine outright is the best choice, as doing so is the most expensive form of acquisition. For this reason, we have compiled a list of when doing so is the best option, as well as a number of tips of what to look out for.
When Is Buying A Commercial Coffee Machine Outright The Best Option
When your business has sufficient cash flow - Purchasing a machine outright can be very expensive - depending on the make and model you select - with some machines costing up to £14,000. If you have sufficient cash flow - purchasing is a great option that helps you avoid lengthy contracts with high-interest rates. However, it is important to remember that although most machines come with a 12-month warranty, service agreements aren’t usually included which can prove costly.
You are certain that the machine you select is one you will be happy with years down the line - Buying a commercial coffee machine outright will mean that you will more than likely have this machine for many years - which is why it’s important to ensure you select a durable and reliable machine. Due to the expensive nature of products such as these, it is unlikely you will have the cash flow available to upgrade regularly to the latest technology - if this is something you wish to do, a lease purchase might be more suited for you.
If your credit check is rejected - Sometimes finance companies deny your request if your credit rating doesn’t meet their criteria, which can leave you feeling defeated. However, leasing is not your only option, with an outright purchase being the next best option available. It is important to remember that not all coffee machines will cost you significant sums of money- with cheaper alternatives being available if you wish to have a more basic selection of features. Many of these machines will still provide you with high-quality coffee, but if you wish for something larger - wishing to add a variety of optional features this will come at a greater cost.
What To Watch Out For When Buying A Commercial Coffee Machine Outright
Budget constraints - When buying a commercial coffee machine, it is important to be aware of your budget restrictions and ultimately what you can get for your money. Those with lower budgets will only be able to acquire smaller coffee machines, with these having lower daily recommended cup counts. However, larger businesses will be able to purchase machines that have larger outputs as well as offering a number of features that increase the machine’s adaptability, such as; syrup stations, cup warmers and payments systems. It is also important to consider the budget for your monthly coffee and cleaning spend - with some branded cleaning materials costing more than others.
Company changes - Are you looking at growing your business in the next few months? This is a question you might hear when going through the acquisition process but is important to think about before proceeding with the purchasing process. Choosing to buy outright is a long-term decision, as the coffee machine you choose will be with you for many years and it is important to take into consideration the potential growth of your business and cater for it accordingly.
Hidden costs - maintenance fees/service charges - When buying a commercial coffee machine outright it is important to consider the additional costs that you commit to when making a purchase of this nature. There are a number of additional fees that should be taken into account; for example, maintenance costs and service charges which need to be considered before choosing to purchase a coffee machine. Once you have committed to purchase a coffee machine outright you have also committed to years of fees - which for some, become a financial burden - particularly if problems surrounding business cash flow arise.
Training - Buying a commercial coffee machine is a viable option for acquiring a great piece of machinery, but one thing you must be aware of is the machine's ease of use. As you will have this coffee machine for a longer duration of time, you must ensure that it is a piece of equipment that employees can easily be trained on/requires little to no training. It’s all well and good having a machine with all the bells and whistles, but if is hard to operate and requires extensive training there's very little point in having a machine.
Capable of producing up to 100 cups per day, the Jura JX6 bean to cup machine is a great solution for a variety of working environments with examples including canteens, staff rooms and offices. This machine can offer a variety of espresso-milk based beverages at the touch of a button, with a selection of innovative features making this a great option for any environment.
Highly popular amongst smaller offices, the Jura WE8 is a bean to cup machine that emulates style and sophistication whilst also being highly functional. With a simple user interface - browsing the drinks menu remains quick and simple, making use of the one-touch technology present in many Jura machines. Capable of producing 30 cups per day, this machine is perfectly suited to those quieter workplaces.
A master of speed, the WMF 5000s is one of the highest scoring bean to cup machines on our list, with a number of positive consumer reviews, praising its ability to satisfy high volumes rapidly. With a number of features making this machine both innovative and impressive, the WMF 5000s is a perfect example of quality German engineering. This machine has been thoughtfully designed, with a number of features making this machine a high capacity - but have been compressed into a smaller housing unit. Its sleek and elegant design ensures that it is in keeping with the WMF family - with its design also built to be functional as well as aesthetically pleasing.
The WMF 1500s is an extremely popular bean to cup machine in many professional environments, particularly within office spaces. This machine has been created to satisfy a demand of up to 180 cups per day - making it a great suit for a variety of environments, with a number of optional add ons ensuring it is highly adaptable. With a range of accessories including milk chillers, cups holders and payments systems increasing the versatility of this WMF bean to cup machine.
The product of thoughtful design, the La Spaziale S2 is picturesque - with its sleek exterior meaning it can fit within a number of environments with ease. However, the choice of materials is not simply for visual appeal, but also helps ensure the temperature is maintained. As with many espresso machines within the La Spaziale family, the La Spaziale S2 incorporates the latest technology, helping it produce up to 150 cups per day.